Rail

American Railcar will invest in leasing plan

Posted on December 14, 2010

American Railcar Industries Inc. (ARI) said it plans to invest in railcar leasing as it seeks to expand and diversify its business in response to customer demands and market conditions.

"ARI is very excited to offer railcar leasing and provide another option for customers to utilize our quality railcars," said President/CEO James Cowan. "We remain committed to meeting the needs of our customers. The economy and railcar market have been challenging over the last couple of years and ARI is responding to those challenges with an expanded market strategy."

The company, which currently sells, repairs, refurbishes and provides fleet management services for railcars, believes railcar leasing will provide customers with a broader offering of services.

ARI is currently in negotiations with American Railcar Leasing LLC (ARL), an affiliate, to enter into an agreement pursuant to which ARL would identify potential leasing customers for ARI in exchange for fees payable by ARI to ARL.

ARI also anticipates that the leasing business will provide a more consistent stream of cash flows and revenue, which management expects would diversify the company and improve performance during the down cycles of the railcar market. ARI currently plans to fund leasing operations through existing cash.

View comments or post a comment on this story. (0 Comments)

More News

RideKC looks at possible P3 methods for KC Streetcar extension

The purpose of this RFI is to generate information that may help confirm and/or refine assumptions regarding innovative delivery and financing options to support streetcar extension.

10 new BART railcars approved for service

BART's $2.6 billion contract with Canadian manufacturer, Bombardier, requires delivery of 150 new railcars every year. 

Why trains in Japan will bark like a dog and snort like a deer

Hundreds of deer stray onto train tracks every year causing widespread rail disruption.

Netflix and terrorism blamed for London Tube ridership decline

Ridership on the London Underground has dropped for the first time in more than 20 year.

Amtrak adds capacity as freeway closure continues to impact Santa Barbara County

Since train tracks reopened on Jan. 11, the Pacific Surfliner has served as the only viable ground transportation option between Ventura and Santa Barbara counties, as drive time on alternate routes between the two counties can take nearly four hours.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close